Five Challenges Facing the IRS’s Direct E-File Pilot Program

With the Internal Revenue Service moving towards offering a free online tool that taxpayers can use to file their tax returns directly with the agency, it faces several pitfalls.

The IRS announced a pilot program that follows a study the agency released Tuesday about the feasibility of an IRS-run direct-file system. The study indicated that there is significant interest from taxpayers in such a filing option.

Much of the pilot program’s specifics are still being worked out, but the agency will need to ensure that its persistent technology and customer-service woes don’t seep into the test run. Additionally, the IRS’s ...